May 2, 2019 / 11:47 AM / 2 months ago

Bank of England's Carney speaks after keeping rates on hold

LONDON (Reuters) - The Bank of England lifted its growth forecasts on Thursday but warned Brexit continued to cloud the outlook for monetary policy and said there was little immediate downside to waiting for a clearer view ahead.

FILE PHOTO: The Governor of the Bank of England, Mark Carney speaks at a news conference at the Bank of England in London, Britain February 7, 2019. REUTERS/Hannah McKay/Pool/File Photo

Below are comments from Mark Carney and other policymakers:

CARNEY ON FORECASTS

The MPC’s latest projections imply that the current market curve, used as a conditioning assumption for our forecast, is unequal to the task of meeting the MPC’s remit.

CARNEY ON THE MARKET CURVE

There are insufficient hikes in the current market curve to be consistent with our remit.

CARNEY ON INVESTMENT V HIRING

What we’re seeing now is there is evidence that the uncertainty around Brexit is effectively raising the hurdle rate for business investment. So the relative cost of investment v hiring has shifted quite substantially in favour of hiring.

The consequence of that ... will have some implications for productivity.

CARNEY ON BREXIT

They (businesses) don’t expect this (Brexit) to be resolved for some time....in that environment it is difficult to make those longer term investment decisions.

CARNEY ON INFLATION

There is steadily building domestic inflationary pressures over the course (of the forecast). When it’s 2.1 in year two, and 2.2 at year three and rising offstage, that’s not target-consistent, or remit-consistent inflation. Again, when the economy is in a position of considerable excess demand.

Reporting by Kate Holton; Andrew MacAskill and James Davey

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